Welcome to advertising we need your help
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An introduction to the Seneca College/School of Creative Advertising Students - 1st Semester
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Semelhante a Welcome to advertising we need your help
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Welcome to advertising we need your help
- 1. 2000 – 2012 Blind faith in technology. Welcome to Advertising We need your help. Baron Manett …………………………………. baron.manett@senecacollege.ca @bstat ca.linkedin.com/in/baronmanett
- 2. 2000 – 2012 Blind faith in technology. TODAY: 1. Hi & welcome 2. Course overview 3. Evaluation 4. Group work 1. Keeper file 2. Some neat stuff 3. Questions & comments
- 3. Wait….who is this guy talking 3
- 4. Blind faith in technology. Baron Manett Professor baron.manett@senecacollege.ca Per Se Brand Experience @bstat bmanett@gmail.com Nice to meet you
- 5. 2000 – 2012 Blind faith in technology. CAB 180 OUTLINE.
- 6. 2000 – 2012 Blind faith in technology. CAB 180: 1. An introduction to the principles of the advertising industry. 2. Agency structures. 3. The processes around strategic planning. 4. Audience research approaches and tools. 5. An appreciation for consumer understand and insights. 6. Buying habits, media & consumer needs. Part I: Buyer Behaviour, Persuasion & Response Part II: Creative Advertising Strategies & Approaches * Note: Course topic areas are subject to change and modification.
- 7. 2000 – 2012 Blind faith in technology. W.I.I.F.M.
- 8. Time spent vs. Media Spend
- 12. 2000 – 2012 Blind faith in technology. We need your help.
- 13. “Traditional marketing communications just aren’t relevant… - Harvard Business Review
- 14. Somehow we thought he had all the answers…
- 15. And then this happened…
- 16. …and this…
- 17. … and then this.
- 18. Now this.
- 19. 2000 – 2012 Blind faith in technology.
- 20. “ To truly engage customers for whom ‘push’ advertising is increasingly irrelevant, companies must do more outside the confines of the traditional marketing organization - McKinsey&Company
- 23. “ To truly engage customers for whom ‘push’ advertising is increasingly irrelevant, companies must do more outside the confines of the traditional marketing organization
- 24. 2000 – 2012
- 25. “ To truly engage customers for whom ‘push’ advertising is increasingly irrelevant, companies must do more outside the confines of the traditional marketing organization - McKinsey&Company
- 27. ?Questions
- 28. 2000 – 2012 Blind faith in technology. Consumer Buying Behaviour.
- 30. Buying Decision Process Buying-Decision Process Need Recognition Choice of involvement level Identification of alternatives Purchase and related decisions Post-purchase behaviour
- 31. Psychological Forces Psychological Forces Motivation Perception Learning Personality Attitude Buying-Decision Process Need Recognition Choice of involvement level Identification of alternatives Purchase and related decisions Post-purchase behaviour
- 32. Social and Group Forces Psychological Forces Motivation Perception Learning Personality Attitude Social & Group Forces Culture Subculture Social Class Reference Groups Family & Households Buying-Decision Process Need Recognition Choice of involvement level Identification of alternatives Purchase and related decisions Post-purchase behaviour
- 33. Information (Promotion/IMC) Psychological Forces Motivation Perception Learning Personality Attitude Social & Group Forces Culture Subculture Social Class Reference Groups Family & Households Promotion Forces Information Forces Buying-Decision Process Need Recognition Choice of involvement level Identification of alternatives Purchase and related decisions Post-purchase behaviour
- 34. Situational Factors Psychological Forces Motivation Perception Learning Personality Attitude Social & Group Forces Culture Subculture Social Class Reference Groups Family & Households Situational Factors When consumers buy Where consumers buy Why consumers buy Conditions under which consumer buys Buying-Decision Process Need Recognition Choice of involvement level Identification of alternatives Purchase and related decisions Post-purchase behaviour Promotion Forces Information Forces
- 35. Other Marketing Forces (3 P’s) Buying-Decision Process Need Recognition Choice of involvement level Identification of alternatives Purchase and related decisions Post-purchase behaviour Psychological Forces Motivation Perception Learning Personality Attitude Social & Group Forces Culture Subculture Social Class Reference Groups Family & Households Situational Factors When consumers buy Where consumers buy Why consumers buy Conditions under which consumer buys Promotion Forces Information Forces Other Marketing Forces Product Price Placement
- 36. Psychological Forces Motivation Perception Learning Personality Attitude Social & Group Forces Culture Subculture Social Class Reference Groups Family & Households Situational Factors When consumers buy Where consumers buy Why consumers buy Conditions under which consumer buys Other Marketing Forces Product Price Place Buying-Decision Process Need Recognition Choice of involvement level Identification of alternatives Purchase and related decisions Post-purchase behaviour Promotion Forces Information Forces
- 38. 2000 – 2012 Blind faith in technology. Groups & discussion.
Notas do Editor
- Who the heck is this guy?
- No case study per se. I ask students to think about/consider the brand they are pitching from CAB 190 (Reza's class). They are asked to get into groups and review the model that is in powerpoint on the screen. Ask some to then go through the forces at work and then the steps in the decision process for this brand. They should know the brand they are pitching from Reza. If not, they can choose any brand of their choice ( ranging from Nike wear to computers to smartphones and snacks). learning takeaways should be: we are influenced by several forces, mostly psychological and social that are not obvious to the consumer and that the decision proces is often not logical but emotional, depending of course on the products being purchased We usually only have time to get to two or three answers but it's a good interactive learning exercise.
- Lecture notes on the consumers decision making process. We are all in the market for a new T.V. set. What do we begin with to start this search? We start with an internal search. We use our memory to do this. We search for existing relevant information. If we do not have internal pre existing knowledge, what do we resort to? An external search. What tools do you use to start this external quest? Internet!! Which tools on the internet?
- An external search. What tools do you use to start this external quest? Internet!! Which tools on the internet? We will examine the consumer decision making process starting with the customers realization that they have a need to satisfy, the searching for information, evaluating the options and finally to making the purchase. Then we will look at the need for companies to respond to consumers after the purchase has been made.
- Consumers – you make decisions on a daily basis. What decisions did you make yesterday that would be important to a marketer? (marketers need to know WHY consumers choose one product over another). Why Nike over Reebok? Understanding this consumer preference and decision making process helps marketers to influence the choice process and helps determine how best to persuade consumers to examine their brand and place it in a group of items being considered for purchase by you.
- So what are some of the essential assumptions that decision making rests on? There is more than one choice available to the consumer. No choice? Then the only decision to make would be whether to buy theproduct or not. What about products such as buying gas or better still electricity? In these cases the decision to purchase is already made for the consumer lessening the need for marketing. We assume that that the consumer must choose from the multiple brands available to them. We assume that the conumer will choose the best possible option that suits their needs.
- Consumer decision making is one of the most important internal processes studied by marketers. This internal process starts with a problem. The consumer realizes that they have just been exposed to a product that might simplify their life or could solve their problem. Next they determine their level of involvement. How important is this purchase, how much of their time will be devoted to this exercise. Then the consumer will search for information that will help them make their decision before making a judgement on the purchase. Then the choice and therefore a decision is made to purchase. In some cases post purchase regret or cognitive dissonance is felt by the consumer. Marketers know how to effectively manage this process from beginning to end including dissatisfied customers. Seeing a need. Problem recognition starts by whenever a consumer sees a significant difference between their actual state of affairs and their ideal state. It is often reffered to as tension. The ideal state is the state a consumer wishes to be. The actual state is where they are now. Can you think of an example of the two states in your experience? Problem recognition. There are two types. Need recognition and opportunity recognition. An example of need recognition is when you run out of milk and you need to go to the store to get some. Opportunity recognition occurs when you go to a friends house and you see that he/she has just bought a new 54 inch Hi Def T.V. and you start to think to yourself that one would be nice to have at your place. Motivating problem recognition. Many marketers try and motivate the consumer to initiate the decision making process by identifying potential problems through advertising. How do they do this? By creating a new ideal state or by creating dissatisfaction with the actual state. By stimulating problem recognition, marketers encourage consumers to persue a means of solving their new problem. Can you think of an example? Before and after imagery is used to create a new ideal state. The problem is caused by a shift in the consumers ideal state. Once the consumer accepts that they have a new problem then the marketer can position their brand as the best way to solve the problem. Problem recognition can be classified two ways. Consumers engage in generic problem recognition or selective problem recognition. Generic is broadly defined. “I want orange juice” Selective is more narrow. I want Old South orange juice. Companies that want to stimulate growth in a specific product category make use of advertising that promotes generic problem recognition and does not encourage purchase of a specific brand. Example “GOT MILK”. You tube example “Aaron Burr” spot. This campaign was started in Californaia and then was rolled out nationally. After years of claiming that milk was good for you, this campaign was aimed at creating generic problem recognition by dramatising the dire consequences of eating snacks and other comfort foods and not drinking milk. Information Search. After a problem has been recognised, the consumer has to seacrch for information in order to resolve it. The first step in the search process is the internal search. First, the consumer searches their own memory followed with an external search. ( information collected from advertisng and other external media). This covers where consumers search. What about when? How does this effect the search process? The search can be ongoing. Marketers often assume that consumers collect as much information as possible before making their decision. Consumers weigh the cost of getting additional information (time and effort) against the benefit the information could provide. If their most pressing need is to have the product quickly then they may forego any research into price and quality and purchase the easily avilable option. Today it is easier to collect information thanks to the internet and so consumers are able to spend less time collecting information. The next stage in this process involves the consumer’s judgement about the product to be purchased. “Will this product do what I want it to”? “Should I buy it or not”? For high risk purchases consumers invest a lot of effort into making judgement decisions. These high effort situations usually occur when there is some risk involved. Such as ??? Selecting a doctor, buying a hose, selecting a partner. To help with this process consumers sometimes use an anchoring strategy. They base their initial evaluation on a known strategy and then adjust their evaluations based on additional information. From who? Friends, reviews, trial and error. The initial evaluation can be influenced by the reputation of the brand. This is the consumers initial anchor. Then it can be reassessed once the product is examined and seen more closely. Based on the quality of the item, the consumer adjusts their initial evaluation either up or down. One method of anchoring is country of origin. What products are synonomous with high quality. Where are they from? France – wine, you try some? When the internal memory search has been combined with the external search then this constitutes the evoked set for this problem. The set that is paired down from the evoked set is called the considered set. But what about low involvement decision making? Consumers use a variety of strategies in order to simplify the decision. They include: Price strategies. Buy the least expensive or the most expensive depending upon the quality desired. Normative strategies. Go along with recommendations from friends. Variety seeking tactics. Buy something different from the last time. Finally, habit. They buy what they are accustomed to buying. One way of increasing habitual buying is to offer repeat or loyal buyer programs. Continuing use of this strategy increases brand loyalty for low effort products. After the decision to purchase the actual purchase is made.
- Companies need to manage their post decision interaction with buyers in order to maintain a long term profitable relationship with them. The key word here is customer satisfaction. Satisfied customers are often repeat purchasers. Repeat customers build profitability by helping to lower costs for the manufacturer. How? By predicting consumer behavior based on past performances help companies budget better but also attracting a new customer cost 5 times that of an existing customer. Dissatisfied customers stop purchasing which affects sales. Dissatisfied customers can complain and spread negative word of mouth. (W.O.M.) Businesses do not hear from 96% of it’s dissatisfied customers. Customers will continue to do business with a company if their complaint is dealt with quickly. Cognitive dissonance is caused by feelings of uncertianty as to whether or not the right decision has been made. This occurs mainly when there is many attractive alternatives to choose from. Or if there is great risk. Consumers seek out return policies or even seek out positive information through advertising to justify the purchase. Maketers provide long term warranties to help cut out dissonance. Others provide 24 hr. toll free numbers in order to reconnect to their customers. Some call within a few days after the purchase. This sends a comfort factor to the consumer. Lastly, the theory of positive and negative disconfirmation. If performance of a product or service experience is better than expected, positive disconfirmation occurs. If performance is worse than expected then , negative disconfirmation occurs. Can you think of any examples?